Most Americans appear to make poor financial plans and are ill-equipped to formulate, on their own, appropriate saving and insurance plans. Unfortunately, existing tools of financial planning are seriously deficient. They lack a sound conceptual framework and often provide extremely poor advice (e.g., spend rather than save bonuses). Economic Security Planning, Inc., is conducting research to develop a commercially viable retirement saving and life insurance software product called ESPLanner TM which is based on a radically different planning technique than that now being used by the financial planning community. ESPLanner TM balances pre-and post retirement living standards in calculating the highest financially sustainable living standard available to each household. An initial prototype of ESPLanner TM is complete (and is enclosed), but additional research is needed to produce a final prototype. This revised proposal addresses the concerns of the review panel. It clarifies that the project's central goal is to produce a commercially viable software product and describes the precise nature of the product. It makes precise the specific aims of Phases I and II and the manner in which Phase I results will be evaluated. It clarifies the key roles to be played by Bernheim and Kotlikoff in assisting the PI in performing project tasks. PROPOSED COMMERCIAL APPLICATION: Applications include software sales to retirement planners, life insurance agents, and other financial professionals, institutional adoption by employers (such as 401K plan sponsors) and ultimately retail software sales to individual households. Through these commercial channels, the software product has the potential to significantly improve financial decisions that affect the adequacy of preparation for retirement.